The House Financial Services Committee and its subcommittees are reviewing credit reporting in the 117th Congress, including legislation that could affect consumer credit reporting information.
On May 26, the House Committee on Financial Services Subcommittee on Oversight and Investigations, chaired by U.S. Representative Al Green, D-Texas, held a virtual hearing,”Consumer credit reporting: assessing accuracy and compliance”, with testimony from Equifax, Experian, TransUnion and the National Center for Consumer Law. Rebecca Kuehn, partner at Hudson Cook LLP, testified on behalf of the Consumer Data Industry Association.
“ACA members take their compliance obligations, including those under the Fair Credit Reporting Act, very seriously. After exhausting and considering other options, in certain cases credit reporting may be the best way to notify consumers of their outstanding debts,” CEO Mark Neeb said in a statement. letter to the leadership of the House Financial Services Committee prior to the hearing. “In addition, consumers may be at risk of obtaining unaffordable credit and services because lenders have an inaccurate credit report and therefore do not understand the consumer’s financial situation.”
Take-aways from the hearing include:
- TransUnion and Experian spoke in their separate testimonial about how they provide free credit monitoring, identity protection tools and credit reporting and have expanded those services during the pandemic.
- Subcommittee Republicans focused on the inherent credit cycle benefits of risk-based pricing to accurately estimate risk, arguing against the formation of unified pricing that would result in higher credit costs and reduced credit availability.
- During interrogations of members with witnesses, U.S. Representative Rashida Tlaib, D-Mich, focused. focuses on the use of credit scores when taking out car insurance and its legislation to stop reporting medically necessary debts.
Language from Tlaib’s Bill, HR 2537, which amends the Fair Debt Collection Practices Act to provide a timetable for the collection of medical debts by debt collection agencies and amends the Fair Credit Reporting Act to prohibit consumer reporting agencies from issuing consumer reports containing information about debts related to medically necessary procedures was included in The Comprehensive Debt Collection Improvement Act, HR 2547, passed by the US House of Representatives in May.
HR 2547 has been referred to the Senate Banking, Housing and Urban Affairs Committee and could be considered sometime this summer. ACA’s grassroots campaign on HR 2547 before the House vote resulted in more than 600 emails being sent to members of Congress, and now is the time to build on this success.
To help you in these efforts, we encourage you to submit letter to your congressman.
Hearing Schedule of the House Financial Services Committee House
The full House Financial Services Committee recently announced a second hearing on credit reporting.
The committee will focus on credit reporting at a June 29 hearing titled:A biased, broken system: exploring proposals to revise credit reporting to achieve equityrapport.”
The committee will host an award ceremony on June 23, according to a press release about the hearing schedule.